The automotive drivetrain market is projected to grow at a CAGR of 6.18% during the forecast period, to reach a market size of USD 278.57 Billion by 2021. The market is driven by factors such as the increasing need for better acceleration, traction, and towing capabilities in vehicles and the growing demand for lightweight shafts and other drivetrain components.

Objectives of the Study:

To define and segment the automotive drivetrain market

To identify the market dynamics and analyze their impact on the automotive drivetrain market for passenger cars, Light Commercial Vehicles (LCVs), and Heavy Commercial Vehicles (HCVs)

The research methodology used in the report involves primary and secondary sources. Secondary sources include associations such as the Society of Indian Automobile Manufacturers (SIAM), Korea Automobile Manufacturers Association (KAMA), International Energy Agency (IEA), and China Association of Automobile Manufacturers (CAAM) and directories such as Factiva and Bloomberg. In the primary research stage, experts from related industries, manufacturers, and suppliers have been interviewed to understand the present situation and future trends of the automotive drivetrain market. The automotive drivetrain market, in terms of volume (000 units) and value (USD million/billion), for various regions, vehicle types, and drive types has been derived. The OEM prices of drivetrain components have been verified through primary sources.

The figure below illustrates the break-up of the profile of industry experts who participated in primary discussions.

The drivetrain market is projected to grow at a CAGR of 6.18% from 2016 to 2021, to reach a market size of USD 278.57 Billion by 2021. The major drivers of this market are the growing demand for comfort and safety in vehicles, rise in vehicle production, and increasing need for better acceleration, traction, and towing capabilities in vehicles.

The All-Wheel Drive (AWD) market, in terms of value, is estimated to grow at the highest CAGR from 2016 to 2021. As AWD systems provide higher power and better control and traction, most Sports Utility Vehicles (SUVs) are equipped with these systems. AWD aids the movement of vehicles on slippery surfaces. This system distributes power to the wheels with increased traction, as the accelerator pedal is pressed. Features such as stability control and anti-slip work in conjunction with AWD. However, they add substantial weight, complexity, and cost to the vehicle. They also reduce the fuel economy owing to the increased drag on the drivetrain.

Battery Electric Vehicles (BEVs) are expected to dominate the electric vehicle segment of the automotive drivetrain market. According to the International Energy Agency, 1 million electric cars were sold in 2015. Ambitious targets and policy support have lowered vehicle costs, extended vehicle range, and reduced consumer barriers in a number of countries. The global market share of electric cars rose above 1% in seven countries in 2015: Norway, The Netherlands, Sweden, Denmark, France, China, and the U.K. Industries, governments, and early adopters have succeeded in demonstrating that electric cars can deliver the practicality, sustainability, safety, and affordability expected from them

Asia-Pacific includes China, India, South Korea, and Japan, which are the top countries in terms of vehicle production; the region consequently leads the automotive drivetrain market, in terms of value as well as volume. The Asia-Pacific market is currently dominated by Front Wheel Drive (FWD) vehicles, but the Rear Wheel Drive (RWD) and AWD segments are also growing at a steady rate. FWDs are typically used in family cars that offer better fuel economy and moderate performance. The relatively calm weather in the Asia-Pacific region eliminates the need for better performance and traction, which is the key advantage of AWD. However, automotive manufacturers are developing new technologies for AWD vehicles to enhance fuel economy. This is expected to spur the growth of the AWD segment in the region. AWDs are rapidly gaining popularity in the Chinese and Indian markets due to the introduction of compact crossovers that offer better traction. This trend is expected to continue in the foreseeable future, with several automakers planning to offer subcompact crossovers.

A key factor restraining the growth of the automotive drivetrain market is the high adoption and maintenance cost of vehicles equipped with AWD. The cost of AWD systems is very high compared to conventional FWD and RWD systems. AWD systems include additional components such as driveshafts, transfer cases, and locking hubs. Additionally, AWD differs in functionality from RWD and FWD. In AWD vehicles, the transfer case helps to shift power from one axle to another, depending on traction conditions. Lubricant fluid in the transfer case helps to keep the gears cool and enables them to turn smoothly. Replacing this fluid at appropriate intervals can help prevent the premature wear-and-tear caused by contaminants present in the lubricant. Some of the key manufacturers operating in the market are Aisin Seiki Co., Ltd. (Japan), American Axle & Manufacturing, Inc. (U.S.), GKN plc (U.S.), and Magna International Inc. (Canada).

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

Custom Market Research Services

We will customize the research for you, in case the report listed above does not
meet with your exact requirements. Our custom research will comprehensively cover
the business information you require to help you arrive at strategic and profitable
business decisions.